Professor Ito Sees Japan Near 2% Inflation by End of 2018

The video discusses Japan's economic situation, focusing on its low inflation rate and the Bank of Japan's strategies. It explores the potential for Japan to reach a 2% inflation rate by 2018, considering factors like oil prices and labor market conditions. The video also reviews the Asian financial crisis, highlighting lessons learned and current risks, particularly in China. China's economic challenges, including high debt levels and capital outflow issues, are examined, with a focus on their strategies to maintain stability and growth.

What is the main challenge Japan faces in achieving its inflation target?

• Strong currency value

• High unemployment rates

• Low core CPI number

• Excessive fiscal policy

What is one of the key lessons learned from the Asian financial crisis?

• Relying on external aid

• Strengthening financial markets

• Reducing foreign reserves

• Increasing corporate debt

What is a significant risk factor for a potential financial crisis in Asia?

• Low oil prices

• Rising US interest rates

• High corporate and local government debt in China

• Weak labor market

What strategy is China using to manage capital outflow?

• Devaluing the currency

• Increasing foreign reserves

• Reducing interest rates

• Tightening capital controls

What is a potential consequence of China raising interest rates?

• Increase in capital outflow

• Plummet in real estate market

• Depreciation of currency

• Boost in real estate market